Mumbai (Maharashtra) [India], June 17: Indxx, a provider of indexing solutions for exchange traded funds (ETFs), is pleased to announce the licensing of the Indxx U.S. Infrastructure Development Index to Global X ETFs Australia. The Index serves as the underlying benchmark for the Global X US Infrastructure Development ETF (Ticker: PAVE), which began trading today on the Australian Securities Exchange (ASX).
The Indxx U.S. Infrastructure Development Index is designed to measure the performance of companies that provide exposure to infrastructure development in the United States. This includes companies involved in the construction and engineering of infrastructure projects; the production of infrastructure raw materials, composites, and products; producers/distributors of heavy construction equipment; and companies engaged in the transportation of infrastructure materials.
A New Era for U.S. Infrastructure
The American Society of Civil Engineers (ASCE) gave America’s infrastructure a grade of C- in their 2021 Infrastructure Report Card. This is the first time in 20 years that America has been ranked out of the D range.1
The Congress has passed several bills, such as the Infrastructure Investment and Jobs Act and the CHIPS and Science Act that will cumulatively invest over $1.2 trillion in modernizing infrastructure in the
United States between 2021 and 2030.2
Rahul Sen Sharma, President and Co-CEO at Indxx said, “Infrastructure is the backbone of a nation’s economy, facilitating trade, enhancing communication, creating job opportunities, and powering businesses. Between 2021 and 2023, the government has invested over $120 billion in U.S infrastructure.2 As of May 2024, private companies have announced $866 billion in manufacturing investments.3 The increasing public and private investments in infrastructure provide a promising outlook for this industry. The success of the Global X U.S. Infrastructure Development ETF (NYSE: PAVE) listed in the United States which tracks our Indxx US Infrastructure Development Index, is a testament to this potential. With over $7.5 billion in assets, the US-listed PAVE’s success highlights investor confidence in the promising future of infrastructure investments. We are excited to partner with Global X ETFs Australia to help Australian investors capitalize on the U.S. infrastructure growth opportunity.”
Vaibhav Agarwal, Chief Product Officer at Indxx added, “The Indxx U.S. Infrastructure Development Index employs a research-focused methodology to provide access to leading companies across the entire U.S. infrastructure value chain, encompassing Construction & Engineering Services, Raw Materials and Composites, Products and Equipment, and Industrial Transportation. To be eligible for inclusion, companies must generate more than 50% of their revenue within the United States, ensuring a targeted and accurate representation of the U.S. infrastructure industry. We are excited to introduce this innovative strategy to the Australian market through Global X ETFs Australia.”
Evan Metcalf, CEO at Global X ETFs in Australia said, “PAVE is a strategic addition to the company’s product suite which not only fills a gap in the market, but client portfolios. Infrastructure development is critical for the growth and modernisation of any economy. Within the U.S., recent legislative acts are directing substantial funding towards infrastructure, signalling enormous growth potential for companies in this sector. This investment opportunity aligns strongly with our core investment thesis of research and innovation. Building on our successful track record of pioneering thematic products in Australia – including our recent launch of GXAI which also tracks an index administered by Indxx – we are excited to introduce this unique infrastructure development ETF to Australian investors.”
As of June 05, 2024, the index has 99 constituents. The index has been back tested to January 31, 2011, and has a live calculation date of February 17, 2017.
For additional information, please see here.
2. Visual Capitalist
About Indxx
Founded in 2005 and with offices in the United States and India, Indxx is a leading index provider delivering innovative solutions to the investment management community at large. These range from end-to end indexing services to data and technology products.
Indxx and products tracking its indices have been nominated for and received numerous awards, including ‘Index Provider of the Year’ at the With Intelligence Mutual Fund & ETF Awards 2022 & 2023, ‘Best Index Provider – Emerging
Markets ETFs’ at the ETF Express US Awards in October 2020, and ‘Most Innovative ETF Index Provider’ for the Americas at the 14th Annual Global ETF Awards in July 2018.
For more information about Indxx, please visit: http://www.indxx.com/
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Divya Agarwal
